GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GVA - US3873281071 - Common Stock
105.61 USD
+0.88 (+0.84%)
105.61 USD
0 (0%)
Overall GVA gets a fundamental rating of 6 out of 10. We evaluated GVA against 55 industry peers in the Construction & Engineering industry. GVA has only an average score on both its financial health and profitability. GVA is growing strongly while it also seems undervalued. This is an interesting combination These ratings would make GVA suitable for value and growth investing!
1. Profitability
1.1 Basic Checks
GVA had positive earnings in the past year.
GVA had a positive operating cash flow in the past year.
GVA had positive earnings in 4 of the past 5 years.
GVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GVA's Return On Assets of 4.40% is in line compared to the rest of the industry. GVA outperforms 58.18% of its industry peers.
GVA has a better Return On Equity (15.79%) than 63.64% of its industry peers.
GVA's Return On Invested Capital of 6.20% is in line compared to the rest of the industry. GVA outperforms 52.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GVA is significantly below the industry average of 17.27%.
The last Return On Invested Capital (6.20%) for GVA is above the 3 year average (3.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 15.79% | ||
| ROIC | 6.2% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
1.3 Margins
GVA's Profit Margin of 4.31% is fine compared to the rest of the industry. GVA outperforms 61.82% of its industry peers.
In the last couple of years the Profit Margin of GVA has grown nicely.
GVA's Operating Margin of 6.08% is in line compared to the rest of the industry. GVA outperforms 56.36% of its industry peers.
GVA has a Gross Margin of 16.39%. This is comparable to the rest of the industry: GVA outperforms 49.09% of its industry peers.
In the last couple of years the Gross Margin of GVA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.08% | ||
| PM (TTM) | 4.31% | ||
| GM | 16.39% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GVA is destroying value.
Compared to 1 year ago, GVA has less shares outstanding
Compared to 5 years ago, GVA has less shares outstanding
GVA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.49 indicates that GVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.49, GVA is in line with its industry, outperforming 47.27% of the companies in the same industry.
GVA has a debt to FCF ratio of 3.86. This is a good value and a sign of high solvency as GVA would need 3.86 years to pay back of all of its debts.
GVA has a better Debt to FCF ratio (3.86) than 69.09% of its industry peers.
GVA has a Debt/Equity ratio of 0.84. This is a neutral value indicating GVA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.84, GVA is in line with its industry, outperforming 43.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.63
WACC9.81%
2.3 Liquidity
GVA has a Current Ratio of 1.21. This is a normal value and indicates that GVA is financially healthy and should not expect problems in meeting its short term obligations.
GVA's Current ratio of 1.21 is in line compared to the rest of the industry. GVA outperforms 47.27% of its industry peers.
GVA has a Quick Ratio of 1.12. This is a normal value and indicates that GVA is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.12, GVA is not doing good in the industry: 61.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
GVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.71%, which is quite impressive.
Measured over the past years, GVA shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.75% on average per year.
Looking at the last year, GVA shows a small growth in Revenue. The Revenue has grown by 6.87% in the last year.
Measured over the past years, GVA shows a small growth in Revenue. The Revenue has been growing by 6.57% on average per year.
EPS 1Y (TTM)61.71%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%31.71%
Revenue 1Y (TTM)6.87%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%12.39%
3.2 Future
The Earnings Per Share is expected to grow by 21.70% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.43% on average over the next years. This is quite good.
EPS Next Y38.6%
EPS Next 2Y26%
EPS Next 3Y21.7%
EPS Next 5YN/A
Revenue Next Year11.61%
Revenue Next 2Y10.53%
Revenue Next 3Y9.43%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.99 indicates a rather expensive valuation of GVA.
Based on the Price/Earnings ratio, GVA is valued cheaply inside the industry as 85.45% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.65, GVA is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.47, GVA is valued correctly.
Based on the Price/Forward Earnings ratio, GVA is valued cheaper than 87.27% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.45. GVA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.99 | ||
| Fwd PE | 16.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GVA is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
GVA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GVA is cheaper than 87.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.35 | ||
| EV/EBITDA | 12.25 |
4.3 Compensation for Growth
GVA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of GVA may justify a higher PE ratio.
GVA's earnings are expected to grow with 21.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)0.55
EPS Next 2Y26%
EPS Next 3Y21.7%
5. Dividend
5.1 Amount
With a yearly dividend of 0.51%, GVA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.73, GVA pays a better dividend. On top of this GVA pays more dividend than 87.27% of the companies listed in the same industry.
With a Dividend Yield of 0.51, GVA pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
5.2 History
The dividend of GVA decreases each year by -0.19%.
GVA has paid a dividend for at least 10 years, which is a reliable track record.
GVA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.19%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
GVA pays out 12.45% of its income as dividend. This is a sustainable payout ratio.
DP12.45%
EPS Next 2Y26%
EPS Next 3Y21.7%
105.61
+0.88 (+0.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners117.34%
Inst Owner Change3.24%
Ins Owners1.11%
Ins Owner Change-0.11%
Market Cap4.62B
Revenue(TTM)4.24B
Net Income(TTM)182.46M
Analysts82.86
Price Target138.21 (30.87%)
Short Float %8.99%
Short Ratio5.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
Yearly Dividend0.52
Dividend Growth(5Y)-0.19%
DP12.45%
Div Incr Years0
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.76%
Min EPS beat(2)6.79%
Max EPS beat(2)12.74%
EPS beat(4)3
Avg EPS beat(4)29.36%
Min EPS beat(4)-4.36%
Max EPS beat(4)102.29%
EPS beat(8)4
Avg EPS beat(8)12.62%
EPS beat(12)7
Avg EPS beat(12)-128.57%
EPS beat(16)8
Avg EPS beat(16)-113.13%
Revenue beat(2)0
Avg Revenue beat(2)-3.91%
Min Revenue beat(2)-4.31%
Max Revenue beat(2)-3.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-4.31%
Max Revenue beat(4)1.87%
Revenue beat(8)3
Avg Revenue beat(8)0.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.26%
Revenue beat(16)8
Avg Revenue beat(16)0.21%
PT rev (1m)4.77%
PT rev (3m)9.27%
EPS NQ rev (1m)-3.59%
EPS NQ rev (3m)-11.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.68%
Revenue NQ rev (1m)1.14%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.99 | ||
| Fwd PE | 16.47 | ||
| P/S | 1.09 | ||
| P/FCF | 13.35 | ||
| P/OCF | 10 | ||
| P/B | 4 | ||
| P/tB | 7.93 | ||
| EV/EBITDA | 12.25 |
EPS(TTM)5.87
EY5.56%
EPS(NY)6.41
Fwd EY6.07%
FCF(TTM)7.91
FCFY7.49%
OCF(TTM)10.56
OCFY10%
SpS96.74
BVpS26.39
TBVpS13.32
PEG (NY)0.47
PEG (5Y)0.55
Graham Number59.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 15.79% | ||
| ROCE | 10.25% | ||
| ROIC | 6.2% | ||
| ROICexc | 8.61% | ||
| ROICexgc | 12.6% | ||
| OM | 6.08% | ||
| PM (TTM) | 4.31% | ||
| GM | 16.39% | ||
| FCFM | 8.18% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
ROICexc(3y)5.78%
ROICexc(5y)N/A
ROICexgc(3y)7.39%
ROICexgc(5y)N/A
ROCE(3y)6.06%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
F-Score7
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 78.54% | ||
| Cap/Sales | 2.74% | ||
| Interest Coverage | 9.61 | ||
| Cash Conversion | 114.13% | ||
| Profit Quality | 189.88% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.49 |
F-Score7
WACC9.81%
ROIC/WACC0.63
Cap/Depr(3y)135.78%
Cap/Depr(5y)115.36%
Cap/Sales(3y)3.7%
Cap/Sales(5y)3.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)61.71%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%31.71%
EPS Next Y38.6%
EPS Next 2Y26%
EPS Next 3Y21.7%
EPS Next 5YN/A
Revenue 1Y (TTM)6.87%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%12.39%
Revenue Next Year11.61%
Revenue Next 2Y10.53%
Revenue Next 3Y9.43%
Revenue Next 5YN/A
EBIT growth 1Y80.62%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year113.85%
EBIT Next 3Y40.86%
EBIT Next 5YN/A
FCF growth 1Y1319.85%
FCF growth 3YN/A
FCF growth 5Y133.59%
OCF growth 1Y342.92%
OCF growth 3Y175.18%
OCF growth 5Y32.58%
GRANITE CONSTRUCTION INC / GVA FAQ
What is the fundamental rating for GVA stock?
ChartMill assigns a fundamental rating of 6 / 10 to GVA.
What is the valuation status of GRANITE CONSTRUCTION INC (GVA) stock?
ChartMill assigns a valuation rating of 8 / 10 to GRANITE CONSTRUCTION INC (GVA). This can be considered as Undervalued.
Can you provide the profitability details for GRANITE CONSTRUCTION INC?
GRANITE CONSTRUCTION INC (GVA) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for GVA stock?
The Price/Earnings (PE) ratio for GRANITE CONSTRUCTION INC (GVA) is 17.99 and the Price/Book (PB) ratio is 4.
Is the dividend of GRANITE CONSTRUCTION INC sustainable?
The dividend rating of GRANITE CONSTRUCTION INC (GVA) is 5 / 10 and the dividend payout ratio is 12.45%.